Answer:
Its total cost is less than $4,000.
Explanation:
Number of units sell by the competitive firm = 500 units
Selling price per unit = $8
Then, the total revenue is as follows:
= Selling price × Number of units sold
= $8 × 500 units
= $4,000
Since the competitive firm is earning a positive profit, so the total revenue is greater than the total cost.
Hence, the total cost must be less than the amount of total revenue i.e, $4,000.
